Russia avoiding Western sanctions on its oil trade by switching to the YUAN

[BADecker]

Maybe the US didn't have any choice. Maybe the USDollar was losing control around the world anyway. But it seems like the sanctions against Russia have only fueled a faster demise of the USD. It actually seems that it was planed by the US banking leaders or some of the US government. Why?


Russia avoiding Western sanctions on its oil trade by switching to the CHINESE YUAN and dumping the dollar


https://www.naturalnews.com/2023-10-06-russia-avoiding-western-sanctions-thanks-to-yuan.html
When nations from the West flaunted a big plan to strangle Russian oil imports and enforce sanctions on Moscow's energy exports, Russia was able to skirt these obstructions by abandoning the dollar and using the Chinese yuan for oil deals.

Russia has successfully avoided most Western-backed sanctions on its oil exports, enhancing Moscow's crude oil revenue as the price of a barrel rushes toward $100 and as the price of Russian Urals oil hits a year's record-high of $80 per barrel.

Based on an analysis of shipping and insurance records by the Financial Times, nearly 75 percent of all maritime Russian crude flows journeyed without Western insurance in August, the only leverage employed to impose the Group of Seven's $60-a-barrel oil price cap. That is an increase from about half this spring.

The hike indicates that Russia is becoming more proficient at bypassing the cap, permitting it to sell more oil at prices closer to international market rates. More significantly, it means that fewer Russian clients are concerned about retaliation from the Western world for buying Russian oil.

Not only is a larger share of Russian oil being sold outside the cap, but the Kremlin's growing independence as a seller has coincided with a strong rally in oil prices, which reached $95 a barrel for the first time in 13 months.

According to the Kyiv School of Economics (KSE) in Ukraine, the steady rise in crude oil prices since July, together with Russia's success in maintaining exports while lowering the steep discounts it is offering on its own oil, means that Moscow's oil revenues are expected to be at least $15 billion higher for 2023 than they would have been.

"Given these shifts in how Russia ships its oil, it may be very difficult to meaningfully enforce the price cap in future. And that makes it even more regrettable that we did not do more to properly enforce it when we had more leverage," said Ben Hilgenstock, an economist at the KSE.

Moscow's successes attributable to Chinese yuan
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[Hispo]

I believe you are overestimating the capacity the Kremlin has to avoid the USA sanctions by simply switching to a different currency, international sanctions are more than cutting access to products and services through accounts in USD, it is also an partial isolation of the Russian government from markets.
Sure, we both agree Russia can always sell their crude oil to China and India, after all they are major consumers of energy, but I highly doubt the Kremlin is getting the best price they can get out their energy by the limited market they can now offer their oil to, they are most likely getting they gas and oil bought pretty cheap, whether that is a problem or not, it is up to debate. It surely won't help India and China to further transition towards electrical vehicles while having such a desperate ally willing to sell energy at discount to further fund an unnecessary war against the smaller neighbor.

BRICS+ is yet to release a statement on the super currency they are alleging to be working on. I doubt China will use it in any meaningful way, the CCP likes to have full control over their FIAT.

[BADecker]

I believe you are overestimating the capacity the Kremlin has to avoid the USA sanctions by simply switching to a different currency, international sanctions are more than cutting access to products and services through accounts in USD, it is also an partial isolation of the Russian government from markets.
Sure, we both agree Russia can always sell their crude oil to China and India, after all they are major consumers of energy, but I highly doubt the Kremlin is getting the best price they can get out their energy by the limited market they can now offer their oil to, they are most likely getting they gas and oil bought pretty cheap, whether that is a problem or not, it is up to debate. It surely won't help India and China to further transition towards electrical vehicles while having such a desperate ally willing to sell energy at discount to further fund an unnecessary war against the smaller neighbor.

BRICS+ is yet to release a statement on the super currency they are alleging to be working on. I doubt China will use it in any meaningful way, the CCP likes to have full control over their FIAT.

You believe that I overestimate. If you look at the current Russian success around the world, it will show you that I have understated it. Russia's commercial success worldwide is just getting started. Before they had the sanctions imposed on them, they didn't have reason to go the routes they are going now.

This is why I say that the sanctions were imposed intentionally to make a new, non-free-world, One-World-Government >>> BRICS. Stuff like this doesn't happen overnight. But it is happening more and more on a daily basis.

[Hispo]

I believe you are overestimating the capacity the Kremlin has to avoid the USA sanctions by simply switching to a different currency, international sanctions are more than cutting access to products and services through accounts in USD, it is also an partial isolation of the Russian government from markets.
Sure, we both agree Russia can always sell their crude oil to China and India, after all they are major consumers of energy, but I highly doubt the Kremlin is getting the best price they can get out their energy by the limited market they can now offer their oil to, they are most likely getting they gas and oil bought pretty cheap, whether that is a problem or not, it is up to debate. It surely won't help India and China to further transition towards electrical vehicles while having such a desperate ally willing to sell energy at discount to further fund an unnecessary war against the smaller neighbor.

BRICS+ is yet to release a statement on the super currency they are alleging to be working on. I doubt China will use it in any meaningful way, the CCP likes to have full control over their FIAT.

You believe that I overestimate. If you look at the current Russian success around the world, it will show you that I have understated it. Russia's commercial success worldwide is just getting started. Before they had the sanctions imposed on them, they didn't have reason to go the routes they are going now.

This is why I say that the sanctions were imposed intentionally to make a new, non-free-world, One-World-Government >>> BRICS. Stuff like this doesn't happen overnight. But it is happening more and more on a daily basis.

But if they wanted to go for new routes and do businesses with other countries through different channels, they did not have to wait for sanctions to happen or start a conflict which translated into such sanctions...
Every country has the right and self-determnation to choose their commercial partners, just how individuals are supposed to have the right to have their commercial partners as well. The Kremlin could have worked on toughen their relations with the rest of the BRICS nations or sell petroleum to China and India, without having sanction against them.
Sure, Sanctions can be a very powerful factor for head of state to find new ways to to businesses, but it is not a previous requirement for it to happen.

[BADecker]

I believe you are overestimating the capacity the Kremlin has to avoid the USA sanctions by simply switching to a different currency, international sanctions are more than cutting access to products and services through accounts in USD, it is also an partial isolation of the Russian government from markets.
Sure, we both agree Russia can always sell their crude oil to China and India, after all they are major consumers of energy, but I highly doubt the Kremlin is getting the best price they can get out their energy by the limited market they can now offer their oil to, they are most likely getting they gas and oil bought pretty cheap, whether that is a problem or not, it is up to debate. It surely won't help India and China to further transition towards electrical vehicles while having such a desperate ally willing to sell energy at discount to further fund an unnecessary war against the smaller neighbor.

BRICS+ is yet to release a statement on the super currency they are alleging to be working on. I doubt China will use it in any meaningful way, the CCP likes to have full control over their FIAT.

You believe that I overestimate. If you look at the current Russian success around the world, it will show you that I have understated it. Russia's commercial success worldwide is just getting started. Before they had the sanctions imposed on them, they didn't have reason to go the routes they are going now.

This is why I say that the sanctions were imposed intentionally to make a new, non-free-world, One-World-Government >>> BRICS. Stuff like this doesn't happen overnight. But it is happening more and more on a daily basis.

But if they wanted to go for new routes and do businesses with other countries through different channels, they did not have to wait for sanctions to happen or start a conflict which translated into such sanctions...
Every country has the right and self-determnation to choose their commercial partners, just how individuals are supposed to have the right to have their commercial partners as well. The Kremlin could have worked on toughen their relations with the rest of the BRICS nations or sell petroleum to China and India, without having sanction against them.
Sure, Sanctions can be a very powerful factor for head of state to find new ways to to businesses, but it is not a previous requirement for it to happen.

They didn't want to go other routes. They were starting to overcome the US through the US routes. That's why the US did the sanctions. But it backfired on the US.

However, BRICS has been around for how long? And discussions between non-US/Nato nations have been going on for ages. But why push BRICS into the open when you are having such success with the US system? Let the US do the work, and prosper off what they work so hard to build... until sanctions come along, of course.